The state’s top lawyer said he has reached a settlement in a lawsuit filed by employee unions 12 years ago after then Gov. John Rowland laid off 2,800 workers.
The settlement with the State Employees Bargaining Agent Commission (SEBAC), which must be approved by a judge and lawmakers, would save the state money, Attorney General George Jepsen said in a statement.
“If this case were not settled, the worst-case scenario involving an award of damages at the trial court would result in exposure to the state of as high as $300 million or more,” Jepsen said in a statement. “Through this settlement, we believe we have reduced the state’s exposure by more than 40 percent and have structured payment of economic damages – by far the largest portion of the state’s exposure – over a minimum of two budget cycles.”
Many of the laid-off workers — who argued that Rowland’s layoffs were politically motivated — returned to their jobs. They will accept their settlement payments in vacation pay or personal leave, Jepsen said.
After losing a U.S. Court of Appeals ruling in May 2013, Jepsen asked the U.S. Supreme Court to take the case. But he withdrew that request later that year in order to enter in settlement discussions with SEBAC.
The AG said the financial risks of not settling were too great.
SEBAC released a statement saying the settlement would end “a dark chapter in our state’s history.”
“By standing together, public service employees and their unions proudly opposed John Rowland’s unlawful and unconstitutional actions for over a decade,” SEBAC said. “They fought for a principle dear to all Americans — that no public official can use his power to punish people just because of the group to which they belong — whether it be a union, a religion, or a political party.
